UK’s Labor Market Showing Signs of Recovery?

Arslan Butt•Thursday, April 8, 2021•1 min read

Recent research by the Recruitment and Employment Confederation (REC) indicates a potential improvement within the UK’s labor market even as the economy is all set to emerge out of lockdowns. There has been an increase in hiring activity across companies in Britain and they even offered a hike in salaries to new employees in March.

Hiring of permanent staff rose at the fastest pace seen in six years while hiring of temporary workers grew at the fastest rate seen in over three years. In addition, the wages offered to temporary workers registered the highest increase seen since December 2019.

However, companies are facing challenges in getting adequate supply of potential candidates as workers expressed uncertainty about the job conditions. Candidates remain hesitant to apply to companies over worries of losing the new positions again in case Britain imposes more lockdowns in the future if the pandemic worsens once again.

Despite this, Chief Executive at the REC, Neil Carberry, remains optimistic about the outlook for the UK labor market, noting, “The strong temporary recruitment trend of the past few months has been maintained, but with a new addition – the fastest increase in permanent job placements since 2015. Taken together with a long-awaited recovery in hiring in London, this is a sign that business confidence is starting to flow back, even at this early stage of unlocking.”

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.